Upon termination of a rental
agreement, a landlord shall return to the tenant the security deposit
minus any amount applied to:
(1) the payment of
accrued rent;
(2) the amount of
damages that the landlord has suffered or will reasonably suffer by
reason of the tenant's noncompliance with law or the rental agreement; SEE
NORMAL WEAR AND TEAR
(3) unpaid utility or
sewer charges that the tenant is obligated to pay under the rental
agreement;
all as itemized by the landlord with the amount due in a written notice
that is delivered to the tenant not more than forty-five (45) days after
termination of the rental agreement and delivery of possession.
The
landlord is not liable until the tenant supplies the
landlord in writing with a mailing address to which to deliver the
notice and amount.
Unless otherwise
agreed, a tenant is not entitled to apply a security deposit to rent.
(b) If a landlord fails to comply (a), a tenant may recover all of the security deposit due the
tenant and reasonable attorney's fees.
(c) This section does not preclude the landlord
or tenant from recovering other damages to which either is entitled.
(d) The owner of the dwelling unit at the time
of the termination of the rental agreement is bound by this section.
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Use of deposits
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A security deposit may be used
only for the following purposes:
(1) To reimburse the
landlord for actual damages to the rental unit or any ancillary
facility that are not the result of ordinary wear and tear.
(2) To pay the
landlord for:
(A)
all rent in arrearage under the rental agreement; and
(B)
rent due for premature termination of the rental agreement by the
tenant.
(3) To pay for the
last payment period of a residential rental agreement if a written
agreement between the landlord and the tenant stipulates that the
security deposit will serve as the last payment of rent due.
(4) To reimburse the
landlord for utility or sewer charges paid by the landlord that are:
(A)
the obligation of the tenant under the rental agreement; and
(B)
unpaid by the tenant.
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IC
32-7-5-14
Sec. 14. In case of damage
to the rental unit or other obligation against the
security deposit, the landlord shall mail to the
tenant, within forty-five (45) days after the
termination of occupancy, an itemized list of
damages claimed for which the security deposit may
be used as provided in section 13 of this chapter,
including the estimated cost of repair for each
damaged item and the amounts and lease on which
the landlord intends to assess the tenant. The
list must be accompanied by a check or money order
for the difference between the damages claimed and
the amount of the security deposit held by the
landlord.
Failure by the
landlord to comply with the notice of damages
requirement within the forty-five (45) days after
the termination of occupancy constitutes agreement
by the landlord that no damages are due, and the
landlord must remit to the tenant immediately the
full security deposit
IC
32-7-5-17
Sec. 17. A waiver of this
chapter by a landlord or tenant, by contract or
otherwise, is void.
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